How to Read the Account Statement of My Credit Card?

We could say that the statement is a summary of the movements made with my credit card .

These purchase operations are determined within a set deadline that is usually monthly, detailing the dates, type of transaction, amount thereof, associated expenses, insurance, commissions and interest rates, among others.

In a nutshell, it is a summary of the operations and costs associated with my credit card in a given period

 

What information does my credit card account contain?

What information does my credit card account contain?

Now, we are going to shred the contents of the statement . If each bank has a different format, the content is similar in all.

Customer and bank data

First of all we have to say that the account statement comes in the name of the cardholder with their personal data and plastic number, although it also includes all the movements made by the additional plastics, although they must appear separately.

In the upper part of the statement of account , the issuing bank and the type of credit card are listed, as well as a relevant piece of information that we must always keep in mind, the period covered by the transactions carried out and included, in addition to the cut-off date. .

 

Amounts to be paid and forms of payment

Amounts to be paid and forms of payment

Here, very important data is reflected. In the first place, the amounts that we have to pay and the modalities to do appear.

The term that is usually highlighted is the deadline to make the payment, a fundamental fact because after the established limit we will enter into a defaulted state in front of the bank and not only that interest will begin to run for this breach, but we will stain our credit history in case of continuing in this situation.

Now, pay attention because the juiciest data appear. Below we make a detail of the different alternatives and amounts to cancel the statement of my credit card otherwise.

  • Minimum Payment : First, banks usually distinguish strongly the amount of the minimum payment assigned to my credit card. The bank is interested in this alternative, because it refinances the debt at very high rates and keeps us captive for several years in this way, as the debt continues to increase.
  • Payment not to generate interest: it is an amount that suits us, but it is the highest. Means canceling my entire statement, without leaving debts that generate interest. In the amount “totalero”, the good cardholder is the one who pays each month.
  • Minimum payment + months without interest : a real headache. Pay only a small portion and also make purchases that mean a debt for several months that we may not be able to pay at term is not recommended. It is an alternative that we should discard but that exist in the account statements.

 

Types of interests and Total Annual Cost (CAT) that apply

Types of interests and Total Annual Cost (CAT) that apply

The account statement of the credit card includes the interest for the financing of the purchases and the current interest rates for the lack of payment of the same.

That is, they are expenses that involve having a plastic and that are linked to their use and associated obligations.

  • Ordinary interest rate : is the percentage assigned to financing
  • Moratorium interest rate : the percentage that is applied in case of “non-payment”
  • Promotional rate : some banks apply a fixed special rate
  • Total Annual Cost (CAT) : Is the final percentage that includes interest, commissions and other expenses

 

Balances and limits

Balances and limits

Credit cards have maximum amounts assigned according to the type of client and card. To do this, the bank describes in my account statement the previous balance and the limits I have available to make provisions in ATMs.

It also details the associated interest and VAT, as well as the discounts we have assigned to reach a total.

Here also the credit limit and the available limit must appear clearly.

The more purchases we have for months with or without interest, the limits are decreasing, because our purchasing capacity becomes smaller.

 

Keywords within a statement of account

Keywords within a statement of account

  • Deadline
  • Cutoff date
  • Current balance
  • Way to pay
  • Minimum payment
  • Full payment
  • Interest rate
  • Monthly payments without interest
  • Total Annual Cost

 

Where do I pay my credit card statement?

Where do I pay my credit card statement?

At the time of paying my statement, at present the banks have extended the option of places to cancel it.

There are several alternatives and you can choose the one that suits you best, but remember some credit cards when they are hired. The form of payment is stipulated in the contract.

  • Debit in bank account : Each month, the bank debits us from the account the amount established in the account statement. Remember to have enough balance so they can make the discount.
  • Cash at the window : You can go to the bank branch with the money and cancel the amount either in cash or check.
  • Banking correspondent : Stores, pharmacies, etc., that have agreements with banks allow payment in the boxes of your card.
  • Online : The websites of financial institutions allow online payments. For this you must have active service with username and password enabled.
  • By telephone : You must call the line available to each bank and select the credit card payment option. There they will ask you for information to authenticate your identity.

How to finance with your credit card for 50 days without paying an interest check!

Learn how to get the juice at the cut-off date of your card. In this article we explain how to use money from the bank for 50 days or more at 0% interest.

Do you want to get more out of your credit card?

Do you want to get more out of your credit card?

What if instead of about 20 days after the cut you had 50 or more to pay your card? It would be a great advantage for your pocket, right?

Achieving this “magic” can be a piece of cake  if you  organize your consumption based on your cut-off date , the day until which financial institutions record payments, purchases, cash advances, among other transactions you make with your credit card. Or vice versa: if you choose the cutoff date based on your consumption pattern .

As you surely know, after this date, the banks give you a period of about 23 days – it depends on the entity, a little more or less – to pay the total amount consumed at zero cost; and if you do not pay the entire balance to the cut, you would automatically be paying an interest for financing of an expensive 60% per year.

Determining the optimal date for the cut of your credit card based on your consumption will allow you to have more time to make your payments .  If necessary, you must ask the bank to change the cut-off date. This will help you avoid trouble making consumptions in a timely manner and reduce financing costs with your credit card, in case you have them.

80% of the largest banks allow you to change your cutoff date

80% of the largest banks allow you to change your cutoff date

For each type of payment processor (Visa, MasterCard, American Express, etc.), large financial entities have a catalog of dates from which customers can choose. 

It is such a simple procedure that you can even request it by phone.  In the bank that takes the longest time to confirm if the modification of the cutoff date is approved, the wait is seven working days. Usually, the change is made for the next court after the application is approved.

The requirement that most banks require is that the client has paid what he owes to the current court or that he at least makes the minimum payment. In entities that offer a deferred credit in combination with the credit card they could demand that the client also pay the debt owed for this product.

In addition, as stated above, it is necessary that the cut-off date desired by the client be within those that the bank has for the type of card that it has approved or activated.

As you can see, requesting the change is the simplest part. But before doing so,  we suggest you determine what your most convenient date might be .

How to identify the cutoff date that suits me best?

How to identify the cutoff date that suits me best?

The ideal cutoff date  will depend on your consumption pattern with the credit card . It is appropriate that the day of the cut is before the dates on which you make the bulk of your consumption, so that you do not have to pay them in just 20 or 23 days, but after your product cuts again in the next month , which will allow you to have an additional 27 days.

Let’s express the idea with an example .  If most of your consumption is concentrated at the end of each month, because you have to pay your bills, make the purchase of the house or fulfill other commitments, it is in your best interest to have your court before these days. Assuming that the date you honor these commitments is the 30th of each month, it is convenient that your card be cut before that day, the 28th could be.

In this way, what you consume after 29 will appear in the card status that will be generated the next time your card is cut. In addition to that it will have been almost 30 days, then you will have 20 or 23 days to pay, in total more or less 50, without paying a penny in interest on financing.

As we have seen, the optimal use of the cut-off date allows us to save time and, if anything, avoid any late fees or financing. We must be clear that this advantage is not to pay less , but to pay later or at the time of the month that suits us best.

Its use is optimal to the extent that we avoid financing costs, which are particularly high in these products. That is to say, we must bear in mind that even harmonizing the dynamic consumption-cut-off date, we must pay everything consumed to the cut on time, every month. That, avoiding financing, is the first rule number of the prudent and wise cardholder.